Foundation

Case Study: The Asian Financial Crisis of 1997 and Its Regional Ripple Effects

A plain-language case study of the 1997 Asian Financial Crisis, told from an Indian investor's seat. The course opens with the 'Asian Miracle' decade and the weak points hidden underneath it: currencies pegged to the dollar, short-term foreign borrowing and companies that earned in local currency but owed in dollars. It then follows the crisis from Thailand's decision to float the baht on 2 July 1997 through the contagion that hit Indonesia, Malaysia, the Philippines, Hong Kong and South Korea, and looks at the very different responses: the IMF rescue packages, Malaysia's capital controls and Hong Kong's defence of its peg. The final chapter explains why India escaped the worst, how the rupee and RBI still felt the pressure, how the shock travelled on to Russia and LTCM in 1998, and the lessons on forex reserves, currency mismatch and hot money that still shape how Indian investors should read a crisis in another emerging market.

Asian Financial CrisisCurrency PegsHot Money and Capital FlowsCurrency MismatchFinancial ContagionIMF BailoutsCapital ControlsForex ReservesRupee and RBI PolicyCrisis Investing Lessons
MODULES
4
DURATION
~2.5 hrs
TRACK
Macro & Markets

What You'll Master

Why fast-growing Asian economies with dollar pegs and heavy short-term foreign borrowing were far more fragile than their growth numbers suggested
How Thailand's baht devaluation in July 1997 spread to Indonesia, Malaysia, South Korea and Hong Kong, and what 'contagion' actually means in markets
How the IMF, Malaysia and Hong Kong each tried to stop the crisis, and what each approach cost
Why India's capital controls, low short-term external debt and memory of the 1991 crisis kept it out of the worst of the damage
How the crisis still moved the rupee and forced RBI to act, and how the shock travelled on to Russia and LTCM in 1998
Practical warning signs, from falling forex reserves to rising dollar debt, that help an Indian investor judge the next emerging market crisis
Access Level
LEARNER
Everything included
Full Text Playbooks
Actionable Exercises
Mobile Reading Mode
Lifetime Updates

Curriculum Breakdown